All Forum Posts by: Mitch Davidson

Hi @Martha M.. There are many options on Amazon. Different sizes and colors to fit your needs. Typically under $100. I tend to provide the ones that still show some of the furniture in spots where a dog won't touch (i.e., some areas aren't covered). My current tenants bought their own, to cover the entire couch and recliner (i.e., a full wrap). I personally don't like having dogs on furniture, in beds, etc., in my own house. But as I talked to past tenants and prospects about this, I found that most people let their dogs go up on furniture, into their bed, etc. Thus the idea for the covers.

@Conner Olsen. Indeed. A huge section of the clientele are single adults, most of which have dogs, at least in my market. I tried to go no pets when I launched in 2018, but quickly learned that I was missing out on the majority of potential tenants. 

Hi @Scott Simpson. My MTR is in Asheville, NC.

@Abigail Gibson. I think you'd surprise yourself with STR. Meaning, once the place is setup, and once you have a great cleaner and repair person, it doesn't consume much time or add much stress. At least for our market, I'm not bullish on MTR right now. I think we have too many, in part due to some people and properties not doing well at STR. Either way you go, as an agent, both models can open some doors. I've been able to get a couple of loan opportunities from my MTR so far. And in the near future I'll start marketing to my STR guests.

@Don Konipol. I haven't had to replace much due to wear and tear. I've upgraded though, to remain competitive in the market. For example, a larger kitchen table, a nicer couch, more attractive curtains, etc. And because most of my tenants have dogs, I provide waterproof furniture covers and get them to sign that they'll keep such on the furniture during their tenancy. 

So far, 13 tenants in, all of my tenants have been "that tenant that rarely calls, keeps the property in top condition, and pays like clockwork, all the while paying off your mortgage, providing you with a consistent cash flow." I'm picky I suppose. I get a BG check, credit report, and full application. Then if they seem like a fit, I interview them, call their employer, etc. Also, I make them provide renters insurance, so that my policy is just a landlord one. The furnishings are cheap, so it doesn't make sense to buy extra insurance for them, such as an STR like policy. And I have a security deposit (1 month) to use if need be.

I launched an MTR in Asheville, NC in 2018, and have had 13 tenants so far. After the first few turns I realized that compared to LTR the MTR model has a great additional benefit, meaning additional to the increased cashflow. With MTR turns are far less expensive regarding repair and maintenance. With MTR, people aren't moving their furniture, appliances, and other furnishings, some of which might not fit so well in my property, in and out of the home. Combine that with the fact that I have a lease, security deposit (which the tenant is less inclined to forget about due to the comparative shortness of their stay), and a rather small property, and I only need to have the place cleaned when someone moves out. I haven't needed to paint, replace floor coverings, etc. Sure, I've spent on upgrading some furnishings, and replacing a few things that wore out, but I've never had damage or wear and tear. Thus I recommend MTR in this regard. As I've cautioned elsewhere, the model is overplayed in some markets right now, perhaps especially where there are many underperforming STR's, so be careful if you're thinking of launching one.

@Andrew Beckmann. I'd follow @Travis Timmons's advise above. In the MTR business this is going to happen. Much of your client pool are people that are relocating to the area. Every now and then they're going to cancel at the last second, and you're going to have to relist and suffer a couple of weeks of loss. It's a cost of doing business. I would release them, and likewise would give them their money back if they made a deposit.

Hi @Danielle Malecek. Welcome to BP and western NC. We have some great, casual, local investor meetups in Asheville that you might enjoy. I'll message you about them. 

@Robert Hasty: Based on your comments, you seem to be more comfortable having an investment nearby to you in western NC. If the PA home will be a stressor, being so far away and being quite aged, it might make sense to sell it now. What I wouldn't do, however, is bury the proceeds from that sale in a new primary residence. Meaning, I'd put the minimum down on a new primary, and even pay MI, and then put the rest of the money to work in other investments, even though the interest rate will be high for the primary. Perhaps when the next refi window opens, which the lending industry feels will be in 2023, you'll have built some equity in the new primary, at least enough to reduce your MI cost. Two other things to consider. First, LTR doesn't work too well in this region, unless you started doing so long ago. Even when rates were low, it was hard to find an LTR scenario that would cash flow, except for mobile homes and multi-family. So, if you stick to SFH, you'll likely need to consider STR. Second, compared to other regions, we have a very few small multi's available. Happy to discuss more by phone...or in person if you pay a visit. Will message you.